GCC Flexible Packaging Market Size
| Study Period: | 2018 - 2028 |
| CAGR: | 6.32 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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GCC Flexible Packaging Market Analysis
The GCC (Gulf Cooperation Council) flexible packaging market is anticipated to register a CAGR of 6.32% over the forecast period. Economic expansion and increased disposable incomes among the workforce are expected to drive market growth in the region during the forecast period.
- The GCC is considered one of the critical markets for the packaging industry in the Middle Eastern region. The primary production industry of the area is the oil and gas sector, which drives most of the country's business revenues. Increased output from various end-use industries, such as food, retail, consumer goods, pharmaceuticals, etc., will increase demand for flexible packaging in the country.
- For instance, according to Saudi Arabia's Ministry of Commerce and Industry, the soft drinks and beverage industries are now among some of the mature sectors in the country, constituting a vast majority of the food and beverage sectors' exports. Most manufacturers are introducing additional functionalities of EVOH films for packaging. Functionalities, such as its cost-effectiveness and high seal strength, have displayed a trend in EVOH films for packaging. EVOH films are used for a food packaging solution, as they can successfully retain the properties of food products, thereby preventing contamination during shipments.
- The increasing trend of consumer products such as food, beverages, and pharmaceuticals is expected to increase the demand for flexible packaging in the region. The growing need for convenient, portable packaging solutions drives increased demand. As the region becomes more urbanized, there is a higher focus on sustainability and convenience in packaging. The general trend to move to flexible packaging is to take advantage of processed food packages and adapt to changing lifestyles.
- Additionally, urbanization and changing demographics have significantly impacted the packaging sector, which is progressively expanding. Additionally, it is affected by shifting consumer trends and behaviors. Changes in income patterns and the associated disposable income have impacted the demand for packaging materials across many sectors.
- However, growing concerns regarding the environment and recycling in the region may restrain the market growth. The region faces a shortage of flexible packaging recycling facilities, which affects the development of proper recycling and the safe disposal of flexible packaging products.
- Flexible packaging manufacturers in the area faced several difficulties due to the COVID-19 outbreak. The effects of the lockdown included disruptions in the supply chain, a scarcity of raw materials needed for production, a labor shortage, and changing prices that drove up the cost of production, shipping problems, and so on. Further, the Russia-Ukraine war impacted the overall packaging ecosystem in the GCC region.
GCC Flexible Packaging Industry Segmentation
The study covers the flexible packaging market tracked in terms of consumption and is limited to flexible packaging products made from plastic, paper, and aluminum.
The study on GCC Flexible Packaging Market tracks demands for material types such as plastic (Flexible (wraps, pouches, films, stand-up pouches, tubes, sleeves, sachets, liners, etc.), paper (paper bags, liquid board, paper wraps) and metal foils (Aluminum) on the high level. The market also tracks the market size in revenue for the respective end-user industry verticals in the GCC region from the listed product types.
The GCC (Gulf Cooperation Council) Flexible Packaging Market is Segmented By Material Type (Plastic, Paper, Metal), By Product Type (Pouches and Bags, Films and Wraps), By End-user Industries (Food, Beverage, Pharmaceutical and Medical, Household and Personal Care), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Material Type | |
| Plastic | |
| Paper | |
| Metal |
| By Product Type | |
| Pouches and Bags | |
| Films and Wraps | |
| Other Product Types |
| By End-user Industry | |
| Food | |
| Beverage | |
| Pharmaceutical and Medical | |
| Household and Personal Care | |
| Other End-user Industries |
| By Geography | |
| Saudi Arabia | |
| UAE | |
| Qatar | |
| Rest of GCC |
GCC Flexible Packaging Market Trends
This section covers the major market trends shaping the GCC Flexible Packaging Market according to our research experts:
Rising Urbanization Rates and the Use of Organized Retails like Supermarkets and Hypermarkets are Driving the Market Growth
- The continued rise in the levels of urbanization, a large expatriate population, and the changing dietary habits of the resident citizens have catalyzed the requirement. Due to the increasing penetration of organized retail formats, such as hypermarkets, supermarkets, and e-commerce, the region's processed and packaged food sector is exhibiting a strong growth rate.
- As the countries in GCC become more urbanized, there is a higher focus on sustainability and convenience in packaging. The general trend to move to flexible packaging is to take advantage of processed food packages and adapt to changing lifestyles.
- According to Interpack, one of the leading packaging trade fairs, 5% of the world's packaged goods are consumed in the Middle East, where business is expanding rapidly. The United Arab Emirates is one of the countries with the highest per capita consumer goods consumption in the world. Consumers prefer healthy food and beverages and pay attention to more sustainable packaging.
- In addition, the rise of modern retail formats in the countries and the availability of a wider variety of frozen ready-to-eat foods has led to a significant increase in demand, attracting time-sensitive consumers looking for convenient groceries. Moreover, the growing influence of western eating habits among domestic consumers has increased the demand for packaged foods. It is further supported by a high proportion of immigrants, tourists, and young consumers driving demand for ready-to-eat, processed, and frozen foods.
- Further, supermarkets and hypermarkets are overtaking the conventional retail sector as the need for packaged goods keeps rising. A growing population, an increase in disposable money, and the development and growth of metropolitan areas are the main forces behind this change. Total 2021 retail sales of packaged food were approximately USD 36.2 billion; of that amount, traditional channels generated 55%, while 45% came through modern retail channels.
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Pharmaceutical and Medical Industry is Expected to Exhibit Significant Growth Rates
- The UAE pharmaceutical industry is expanding quickly. Even though the UAE now imports most of its medications, this is starting to change due to partnerships between UAE businesses and some of the world's prominent pharmaceutical corporations to produce goods locally. The COVID-19 pandemic shifted the UAE's emphasis to investing in the biological sciences domestically and internationally.
- According to ITC, in 2021, the imports of pharmaceutical products in the United Arab Emirates were valued at around USD 6.57 billion, a 47.84% rise in imports from the previous year, 2020, valued at about USD 4.44 billion. The significant increase in imports signifies the increasing demand for pharmaceutical products in the region, thereby creating demand for product packaging companies.
- Further, the nation is establishing relationships with prominent international market participants to enhance its production of pharmaceutical items. The market is expected to expand the pharmaceutical market in the UAE further over the next five years through advantageous funding and distribution channel plans, a strategic position, and advanced logistical infrastructure. The initiative for local manufacturing also increases the demand for firms in flexible pharmaceutical packaging.
- For instance, in June 2022, UAE-based capsule production and packaging facility Bioventure Healthcare FZE announced a new manufacturing partnership with global science-led UK healthcare business GlaxoSmithKline (GSK). GSK will transfer the secondary packaging of 20 of its most important products, including those for the central nervous system, dermatology, urology, allergy, and respiratory therapy, to the UAE through this partnership.
- Furthermore, the growing demand for tamperproof packaging is driving the need for blister packaging, including features such as enhanced barrier protection and reduced packaging weight. The Saudi Arabian government has taken the initiative to strengthen and improve the pharma and healthcare sector in the region. For instance, according to ITA, in 2022, the Saudi government is expected to spend USD 36.8 billion on healthcare and social development, which accounts for 14.4 %of its 2022 budget, after education and military.
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GCC Flexible Packaging Industry Overview
The GCC Flexible Packaging Market has a broad portfolio of suppliers from the local and international markets. This factor leads to high competition among the vendors. Due to the absence of multiple distribution channels, the vendors directly interact with the end-users to sell their products. This scenario leads to long-term deals with end-users. Hence, the vendors often choose to retain or make new clients through competitive pricing strategies. Additionally, as most of the packaging material is sourced from imports, there is high competition among the suppliers to capture a limited number of players in the market. This factor intensifies the competitive rivalry among local and foreign manufacturers.
Some prominent players in the market include Huhtamaki Flexibles UAE, ENPI Group, Arabian Packaging Co. LLC, Amber Packaging Industries LLC, and Rotopacking Materials Ind. Co. LLC, among others.
- November 2022: A new manufacturing facility for Hotpack Global has opened in Qatar. The facility, which represents Hotpack's global aim to lead the food packaging industry by 2030, is the company's fifteenth factory that it owns and operates worldwide. The production facility, situated in Doha's new industrial district, is a specialist factory that will create a wide range of Hotpack paper goods, including paper bags and cups. In addition to expanding its production and logistical operations, the firm has opened additional sales centers in Bahrain, Oman, and Saudi Arabia.
- February 2022: Al Bayader International, a manufacturer, and provider of packaging and cleaning solutions in the UAE, announced a new business division created especially for the food industry. These solutions are a part of a more extensive portfolio of inventive food solutions that the new F&B division of the corporation has developed via intensive research and development. Al Bayader International's food section expands its present F&B packaging business to offer a one-stop shop for the industry.
GCC Flexible Packaging Market Leaders
Huhtamaki Flexibles UAE
ENPI Group
Rotopacking Materials Ind. Co. LLC
Amber Packaging Industries L.L.C.
Arabian Flexible Packaging LLC
*Disclaimer: Major Players sorted in no particular order
GCC Flexible Packaging Market News
- November 2022: SABIC, a chemical manufacturer in Saudi Arabia, collaborated with Bolsas de Los Altos and Guangdong Jinming Machinery to create flexible film packaging options. The collaboration aims to promote the expansion of polyolefin-based products in the flexible packaging market. The performance of SABIC's polyolefin resin products, including the polyethylene resin line from Gulf Coast Growth Ventures (GCGV) and TRUCIRCLE, will be evaluated and validated through this channel.
- June 2022: SABIC, a worldwide player in the chemical sector, partnered with Heinz, Tesco, and Berry in an innovative recycling initiative in the United Kingdom to close the loop on soft plastic food packaging. The certified circular polypropylene (PP) from Sabic's Trucircle portfolio, constructed of 39% recycled soft plastic, was created for the microwaveable Heinz Beanz Snap Pots using flexible plastic packaging collected from Tesco shops.
GCC Flexible Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Urbanization Rates and the Use of Organized Retails like Supermarkets and Hypermarkets
5.1.2 Growing Adoption of Various Packaging Options in the FMCG Industry
5.2 Market Restraints
5.2.1 Growing Concerns Regarding the Environment and Recycling in the Region
5.2.2 Fluctuations in Raw Material Prices may Restrict the Market Growth
5.3 Market Opportunities
5.4 EXIM Analysis of Flexible Packaging in United Arab Emirates
6. MARKET SEGMENTATION
6.1 By Material Type
6.1.1 Plastic
6.1.2 Paper
6.1.3 Metal
6.2 By Product Type
6.2.1 Pouches and Bags
6.2.2 Films and Wraps
6.2.3 Other Product Types
6.3 By End-user Industry
6.3.1 Food
6.3.2 Beverage
6.3.3 Pharmaceutical and Medical
6.3.4 Household and Personal Care
6.3.5 Other End-user Industries
6.4 By Geography
6.4.1 Saudi Arabia
6.4.2 UAE
6.4.3 Qatar
6.4.4 Rest of GCC
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Huhtamaki Flexibles UAE
7.1.2 Rotopacking Materials Ind. Co. LLC
7.1.3 ENPI Group
7.1.4 Amber Packaging Industries LLC
7.1.5 Radiant Packaging Industry LLC
7.1.6 Emirates Printing Press (LLC)
7.1.7 Arabian Flexible Packaging LLC
7.1.8 Hotpack Packaging Industries LLC
7.1.9 Napco National
7.1.10 Saudi Printing and Packaging Co.
7.1.11 Gulf Packaging Industries Limited
7.1.12 Integrated Plastics Packaging LLC
*List Not Exhaustive8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
GCC Flexible Packaging Market Research FAQs
What is the study period of this market?
The GCC Flexible Packaging Market is studied from 2018 - 2028.
What is the growth rate of GCC Flexible Packaging Market?
The GCC Flexible Packaging Market is growing at a CAGR of 6.32% over the next 5 years.
Who are the key players in GCC Flexible Packaging Market?
Huhtamaki Flexibles UAE, ENPI Group, Rotopacking Materials Ind. Co. LLC, Amber Packaging Industries L.L.C., Arabian Flexible Packaging LLC are the major companies operating in GCC Flexible Packaging Market.
GCC Flexible Packaging Industry Report
Statistics for the 2023 GCC Flexible Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Flexible Packaging analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
